Friday, January 25, 2013

Russia
made uneven progress in democratization during the 1990s, but this limited
progress was reversed after Vladimir Putin rose to power in 1999-2000,
according to many observers. During this period, the State Duma (lower
legislative chamber) became dominated by governmentapproved parties,
gubernatorial elections were abolished, and the government consolidated ownership
or control over major media and industries, including the energy sector. The
Putin government showed low regard for the rule of law and human rights in
suppressing insurgency in the North Caucasus, according to critics.
Dmitriy Medvedev, Putin’s longtime protégé, was elected president in 2008;
President Medvedev immediately designated Putin as prime minister and
continued Putin’s policies. In August 2008, the Medvedev-Putin “tandem”
directed military operations against Georgia and recognized the
independence of Georgia’s separatist South Ossetia and Abkhazia, actions
condemned by most of the international community. In late 2011, Putin announced
that he would return to the presidency and that Medvedev would become prime minister.
This announcement, and flawed Duma elections at the end of the year, spurred
popular protests, which the government addressed by launching some reforms
(such as the return of gubernatorial elections) and holding pro-Putin
rallies. In March 2012, Putin was (re)elected president by a wide margin.
The day after Putin’s inauguration on May 7, the legislature confirmed
Medvedev as prime minister. Since then, Putin appears to be tightening
restrictions on freedom of assembly and other human rights.

Russia’s Economy

Russia’s economy began to recover from the Soviet collapse in 1999, led mainly
by oil and gas exports, but the decline in oil and gas prices and other
aspects of the global economic downturn beginning in 2008 contributed to
an 8% drop in gross domestic product in 2009. Since then, rising world oil
prices have bolstered the economy. Russian economic growth continues to be
dependent on oil and gas exports. The economy is also plagued by an
unreformed healthcare system and unhealthy lifestyles; low domestic and
foreign investment; and high rates of crime, corruption, capital flight,
and unemployment.

Russia’s Armed Forces

Russia’s armed forces now number less than one million, down from 4.3 million
Soviet troops in 1986. Troop readiness, training, morale, and discipline
have suffered, and much of the arms industry has become antiquated. Russia’s
economic growth during most of the 2000s allowed it to increase defense
spending to begin addressing these problems. Stepped-up efforts have begun to restructure
the armed forces and improve their quality. Opposition from some in the armed
forces, mismanagement, and corruption seemingly have slowed this
restructuring.

U.S. – Russia Relations

After the Soviet Union’s collapse, the United States sought a cooperative
relationship with Moscow and supplied almost $19 billion in aid for Russia
from FY1992 through FY2010 to encourage democracy and market reforms and
in particular to prevent the proliferation of weapons of mass destruction
(WMD). In the past, U.S.-Russia tensions on issues such as NATO enlargement
and proposed U.S. missile defenses in Eastern Europe were accompanied by some cooperation
between the two countries on anti-terrorism and nonproliferation. Russia’s 2008 conflict
with Georgia, however, threatened such cooperation. The Obama Administration
has worked to “re-set” relations with Russia and has hailed such steps as the
signing of a new Strategic Arms Reduction Treaty in April 2010; the
approval of new sanctions against Iran by Russia and other members of the
U.N. Security Council in June 2010; the accession of Russia to the World
Trade Organization on August 22, 2012; and the cooperation of Russia in
Afghanistan as signifying the “re-set” of bilateral relations. However, in
late 2012, Russia ousted the U.S. Agency for International Development
(USAID) from the country, and criticized the help that USAID had provided
over the years as unnecessary or intrusive. H.R. 6156 (Camp), authorizing permanent
normal trade relations for Russia, was signed into law on December 14, 2012
(P.L. 112-108). The bill includes provisions sanctioning those responsible
for the detention and death of lawyer Sergey Magnitsky and for other gross
human rights abuses in Russia.

Date of Report: January 2, 2013
Number of Pages: 86Order Number: RL33407Price: $29.95

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